Pressure cook tomatoes upto 2 whistles.
Remove the skin of the cooked tomatoes and make it into a puree.
Boil 1 onion and make it into a paste.
Chop the other onion length-wise.
Fry the paneer cubes lightly and keep aside.
Heat 3 tsp of butter in a pan or a kadai.
Fry the chopped onion, until it turns light brown.
Add onion paste, ginger-garlic paste and cashewnut paste and stir for about 3 - 4 mins.
Add garam masala powder and stir for another couple of mins.
Add tomato puree, chilly powder, yogurt and kasuri methi and stir for about 5 mins.
Add fried paneer, sugar and salt to the mixture and stir for about 3 - 4 mins.
Garnish with 1 tsp of butter, cream and coriander leaves.
* You can increase the quantity of water if you need more gravy.* You can add 250g tomato passata instead of tomatoes* Alternately you can fry all the onions till light brown and grind to paste.